The FM spoke on a wide range of topics, including fiscal consolidation, the goods and services tax (GST), and measures to enhance ease of doing business in India, among others.

Here are Jaitley’s words on some of the pressing issues raised in his address in Singapore.

On fiscal consolidation: No pause but challenges arising from structural reforms, which could change the glide path.

On recapitalisation of PSBs: Recapitalisation of state-owned banks will be performance-linked. Am announcement regarding this will be made soon. There will be one or two instances of consolidation in state-owned banks over the next twelve months, or a year. State-owned banks are to be encouraged to use capital to lend to the micro, small and medium enterprises (MSMEs). There needs to be a concerted policy to direct loans to MSMEs in the near future.

On GST: The committee system has helped to build consensus. Rates will continue to decline over the next two years. There has been a 40 per cent (3.5 million assessees) increase in the number of assessees over the old system. Net tax revenue has exceeded pre-GST levels. The E-way bill will be cleared in Karnataka next quarter and other states will follow suit.

On private capex: Investments have been slow because of surplus capacity but a better global economy, coupled with bank recapitalisation and FDI and public investments should help improve private capex.

On interest rates: While every government wishes for lower interest rates, the final call is with the central bank.

On divestments: Power and oil companies to remain public sector companies. A mix of privatisation (AIR India and Dredging Corp) and divestments to be used to raise resources.